19260113_230p_Minutes.pdf

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Upon call of the Governor, a special meeting of the Federal Reserve

Board was held in the office of the Federal Reserve Board on Wednesday,

January 13, 1926 at 2:30 p.m.

the

PRESENT: Governor CrissingerMr. PlattMr. HamlinMr. MillerMr. Janes.Mr. CunninghamMr. Eddy, SecretaryMr. McClelland, Asst. Secretary

Mr. Wyatt, General Counsel, entered the meeting and discussed with

Board a memorandum dated January 13th, with reference to the case brought

against the Federal Reserve Bank of San Francisco by the Idaho Grimm Alfalfa

Seed Growers Association. He stated that verdict in favor of the plaintiff

hed been renaered in the United States District Court, and had been upheld

in the United States Circuit Court of Appeals and called attention to the

fact that his office had not been advised of the case until after .dectsion

had been rendered in the Appellate Court.

After discussion, Mr. Hamlin moved that thememorandum be referred to the Law Committee and thatCounsel prepare for submission to the Board a letterto all Federal Reserve banks requesting prompt adviceto the Board's General Counsel of all suits broughtagainst the banks.

Carried.

The Governor stated that special order business for this meeting

wowId be consideration of the schedules of rates of discount and purchase

14 effect at the various Federal Reserve banks and the following motion

allblnitted by Yr. Miller at the meeting on January 11th:

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"That the minimum rates for the purchase of bankers

acceptances in effeot at all Federal Reserve banks be

advanced to :5 1/4%".

After discussion, Mr. Miller's motion was put

by the Chair and lost, Messrs. Platt and Miller

voting "aye".

Telegram dated January 7th from the Federal Reserve Bank of New York,

aavising or its effective rates for purchases of cankers acceptances, as

aPproved oy the Board at its meeting on that date; the telegram also advis-

ing or the establishment of a rate of 4% for purchases of governient securi-

ties, unaer agreement to resell.

Noted, with approval.

Telegram and letter dated January 6th from the Chairman of the Federal

Reserve Bank of Philadelphia, advising of the bank's effective buying rates

on bankers acceptances ana requesting approval of an increase in the bank's

Minimum authorized buying rate to 4.

Noted, with approval.

Telegram and letter dated January 8th from the Secretary of the Federal

Reserve Bank of Cleveland, transmitting schedule ot rates of aiscoant and

PnMhase in effect at that Dank.

Noted, with approval.

Telegram dated January 8th from the Chairman of the Federal Reserve

Bank Of Atlanta, advising of rates of discount and purchase in effect at

that oank.

Noted, with approval.

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Telegram and letter dated January 11th from the Federal deserve

Agent at Chicago, with regard to rates of discount and purchase in effect

at that bank.

• Noted, with approval.

/Letter dated January 11th from the Federal aeserve Agent at Chicago,

referring to the Board's letter of January 5, 1926, (X-4493) on the subject

"Procedure at Aeserve Banks on Hates"; the Federal aeserve Agent stating

that tile Board's letter refers only to consideration of rates at directors'

meetings and inquiring whether the proceaure outlined should be followed

also at meetings of the Executive Committee of the bank in view of the fact

that the Board of Directors meets but once a month.

Upon motion, it was voted to advise the Federal

deserve Agent that he should inform the Board of

changes in rates made by the Executive Committee as

well as by the Board of Directors. ,

The Governor then reported on the matter referred to the Executive

Committee at the meeting on January 11th, submitting a draft of reply to

latter dated January 7th from Mr. Johnij. Barton, Chairman of the American

Bankers Association Committee on Non-Cash Items, with reference to a hearing

before the Board at which to present an analysis of the questionnaire on

that subject sent out to member banks; the proposed reply stating that the

qUestion of non-cash collections by Federal deserve banks was to have been

settled on the basis of briefs submitted by the American Bankers' Association

°°1b 1ittee and by a committee of Governors of Federal deserve banks and that

the Board sees no reason why there Silauld be a hearing for the presentation

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01 the analysis of t;iiki questionnaire referred to, and further, that if the

American Bankers' Association Committee desires to furnish tne Board with

the analysis, it snoula forward same immediately and the Board will give it such

consideration in connection with the consideration of the uriefs filed, as the

8Ubject matter of the questionnaire may require.

After discussion, Mr. James moved in lieu of the

auove letter that the Board advise the American Bankers'

Association Committee that a hearing on the subject of

non-cash collections iil be held on January 2dth.

Mr. James' motion being put uy the Chair was

lost, ;he members voting as follows:

Mr. Hamlin, "aye"Mr. James, "aye"Mr. Cunningham, "aye"

Governor Crissinger, "no"

Mr. Platt, "no"Mr. Miller, "no"

Alter further discussion, upon motion by Mr. Miller,

it was voteu to approve the above letter as amended,

Messrs. Hamlin and James voting "no".

The Governor tnen presented draft of a letter to the Chairman of the

Pecieral Reserve Bank of Cleveland, with reference to letter dated December

30th addressed to the Board by the Secretary of that bank, advising that the

4141ar;> of D. O. Wills, deceased, "will ue discontinued as of Decemuer

the proposed reply pointing out that the Board can find no //arrant

ot,aw whic.th would permit the Federal Reserve Bank of Cleveland to make

DaYment of salary ueyond the date of Mr. Wills' death, and requesting nim

tc. send to the Board a transcript of the record of his uank showing the

4etedled action and vote taken authorizing the payment anu the names Of

thC/se voting on ;nu proposition.

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Upon motion motion uy Mr. Hamlin, the above letter

aas approved.

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The minutes of the meetingsof the Federal Reserve Board held on January

7t14 and 11th Jere then read and approved.

The minuce o the meeting of the Federal Reserve Board held on January

12th 'aura read and approved as amended.

The Governor then reierred to applications o3: the First National Bank

44a tue Albuquerque National Bunk, of Alouquerque, New Mexico, and the First

National Bank of Belen, Now Mexico, ior transfer from the llth to the 10th

Pederal Reserve District.

After discussion, Mr. Platt moved that the

Board advise tne Federal Reserve Banks Of Dallas

and Kansas City that it is disposed to grant the

petition of the banks for transfer from the 11th

to the 10th Federal Reserve District, but wouldlike

to hear from the Federal Reserve uanks as to whether

or not there is any objection on their part to the

Board taking such action.

Carried.

The meeting adjourned at 4:jU p.m.

Secretary.

•

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